Working from home because of COVID-19? Here's what you can claim next tax season

Ontarians working from home this spring due to COVID-19 could be in for a break next tax season — if they take the time to claim home office expenses.

Dave Walsh, who leads the tax services branch at BDO Canada, says anyone who has shifted to working from home during the pandemic should document their expenses and plan to claim them next year.

“Personally I do think it’s worth it. You should claim everything you’re entitled to,” he said. “If it can help you reduce your overall tax bill, then my advice is always to claim what you’re allowed and what you’re eligible for.”

While the prospect of organizing months' worth of bills and receipts might intimidate people who have never claimed home office expenses, Walsh said it’s a manageable task — and worth your time.

Who is eligible

Anyone asked to work from home by an employer may claim home office expenses on a tax return, Walsh said.

Employers will need to sign a Declaration of Conditions of Employment, known as Form T2200, asserting that the employee was required to maintain a workspace at their home. The employer should keep this form on file, should the CRA ask to review it.

“In this era now that we’re in of COVID-19, a lot of people have been forced now to work from home,” Walsh said. “So that test should be met.”

In order to claim home expenses, employees also need to establish a designated work area where they perform most of their work tasks. This designated area will matter when the time comes to calculate how much of the cost of home utilities to claim.

Walsh said people who are self-employed and work from home are also eligible to claim home office expenses with their taxes.

What is eligible

Employees who have been asked to work from home can claim a portion of utilities like heat, hydro, home payments, internet and phone service for the duration of the time they worked from home.

The amount a person can claim for utilities like heat, hydro and home payments is calculated using a simple formula: take the square footage of the designated work area and divide it by the square footage of the entire home. Whatever percentage you end up with is the percentage of each bill you can claim.

The calculation for internet and phone bills is a little different.

“Take your bill and allocate which percentage is used for your job and which percentage is used for home, and you’re allowed to claim the business portion,” Walsh said.

Finally, employees working from home are eligible to claim the cost of home office supplies like pens, paper and printer ink.

Self-employed people working from home can claim the said expenses, plus a share of property taxes, mortgage interest and home insurance.

Walsh advises saving and organizing all utility bills and home office receipts during the time spent working from home.

“We always recommend you keep them on file in case you’re ever asked for them by the CRA,” he said. “Sometimes they’ll ask for additional information. You don’t have to provide them until you’re asked for them.”

Working from home because of COVID-19? Here's what you can claim on your taxes

The #futureofwork could include claiming your heating bill as a business expense

Ontarians working from home this spring due to COVID-19 could be in for a break next tax season — if they take the time to claim home office expenses.

Dave Walsh, who leads the tax services branch at BDO Canada, says anyone who has shifted to working from home during the pandemic should document their expenses and plan to claim them next year.

“Personally I do think it’s worth it. You should claim everything you’re entitled to,” he said. “If it can help you reduce your overall tax bill, then my advice is always to claim what you’re allowed and what you’re eligible for.”

While the prospect of organizing months' worth of bills and receipts might intimidate people who have never claimed home office expenses, Walsh said it’s a manageable task — and worth your time.

Who is eligible

Anyone asked to work from home by an employer may claim home office expenses on a tax return, Walsh said.

Employers will need to sign a Declaration of Conditions of Employment, known as Form T2200, asserting that the employee was required to maintain a workspace at their home. The employer should keep this form on file, should the CRA ask to review it.

“In this era now that we’re in of COVID-19, a lot of people have been forced now to work from home,” Walsh said. “So that test should be met.”

In order to claim home expenses, employees also need to establish a designated work area where they perform most of their work tasks. This designated area will matter when the time comes to calculate how much of the cost of home utilities to claim.

Walsh said people who are self-employed and work from home are also eligible to claim home office expenses with their taxes.

What is eligible

Employees who have been asked to work from home can claim a portion of utilities like heat, hydro, home payments, internet and phone service for the duration of the time they worked from home.

The amount a person can claim for utilities like heat, hydro and home payments is calculated using a simple formula: take the square footage of the designated work area and divide it by the square footage of the entire home. Whatever percentage you end up with is the percentage of each bill you can claim.

The calculation for internet and phone bills is a little different.

“Take your bill and allocate which percentage is used for your job and which percentage is used for home, and you’re allowed to claim the business portion,” Walsh said.

Finally, employees working from home are eligible to claim the cost of home office supplies like pens, paper and printer ink.

Self-employed people working from home can claim the said expenses, plus a share of property taxes, mortgage interest and home insurance.

Walsh advises saving and organizing all utility bills and home office receipts during the time spent working from home.

“We always recommend you keep them on file in case you’re ever asked for them by the CRA,” he said. “Sometimes they’ll ask for additional information. You don’t have to provide them until you’re asked for them.”

Top Stories

Working from home because of COVID-19? Here's what you can claim on your taxes

The #futureofwork could include claiming your heating bill as a business expense

Ontarians working from home this spring due to COVID-19 could be in for a break next tax season — if they take the time to claim home office expenses.

Dave Walsh, who leads the tax services branch at BDO Canada, says anyone who has shifted to working from home during the pandemic should document their expenses and plan to claim them next year.

“Personally I do think it’s worth it. You should claim everything you’re entitled to,” he said. “If it can help you reduce your overall tax bill, then my advice is always to claim what you’re allowed and what you’re eligible for.”

While the prospect of organizing months' worth of bills and receipts might intimidate people who have never claimed home office expenses, Walsh said it’s a manageable task — and worth your time.

Who is eligible

Anyone asked to work from home by an employer may claim home office expenses on a tax return, Walsh said.

Employers will need to sign a Declaration of Conditions of Employment, known as Form T2200, asserting that the employee was required to maintain a workspace at their home. The employer should keep this form on file, should the CRA ask to review it.

“In this era now that we’re in of COVID-19, a lot of people have been forced now to work from home,” Walsh said. “So that test should be met.”

In order to claim home expenses, employees also need to establish a designated work area where they perform most of their work tasks. This designated area will matter when the time comes to calculate how much of the cost of home utilities to claim.

Walsh said people who are self-employed and work from home are also eligible to claim home office expenses with their taxes.

What is eligible

Employees who have been asked to work from home can claim a portion of utilities like heat, hydro, home payments, internet and phone service for the duration of the time they worked from home.

The amount a person can claim for utilities like heat, hydro and home payments is calculated using a simple formula: take the square footage of the designated work area and divide it by the square footage of the entire home. Whatever percentage you end up with is the percentage of each bill you can claim.

The calculation for internet and phone bills is a little different.

“Take your bill and allocate which percentage is used for your job and which percentage is used for home, and you’re allowed to claim the business portion,” Walsh said.

Finally, employees working from home are eligible to claim the cost of home office supplies like pens, paper and printer ink.

Self-employed people working from home can claim the said expenses, plus a share of property taxes, mortgage interest and home insurance.

Walsh advises saving and organizing all utility bills and home office receipts during the time spent working from home.

“We always recommend you keep them on file in case you’re ever asked for them by the CRA,” he said. “Sometimes they’ll ask for additional information. You don’t have to provide them until you’re asked for them.”